Just an FYI - Effective November 1, 2009, California Personal Income Tax (PIT) Withholding Schedules Replaced Watch for computer updates to your software!! If you are not using MAS or QuickBooks payroll, the modified schedules can be downloaded from EDD’s web site at http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm#2009PITWithholdingSchedules

F had a full-time job and ran a small store on the side that had a loss its first full year. F deducted the loss on Sched. C. Because he had no proof of any business transactions, the IRS deleted the F’s return both revenues and expenses. F appealed to the Tax Court, this time [...]

Some may face underpayment of FIT Because of the new withholding tables under the American Recovery and Reinvestment Act, some employees might want to adjust their 2009 FITW by submitting a new W-4 now. The Act reduced FITW to reflect the Make Work Pay tax credit. But for some employees, that adjustment may result in [...]

Employers were required to begin using the new I-9 on April 3, 2009. Using the old edition – which was dated 06.05.2007 – could trigger fines. Click here for the new form in English (if you require the Spanish form, send us an email with I-9 in the subject and we’ll send it to you.

Here’s how a company can use the tax code to help the environment: 1. Companies purchasing hybrids may qualify for a credit of $250 - $3,400, depending on fuel efficiency. Caution: the credit disappears after the sale of 60,000 qualifying vehicles (which may not have occurred yet in 2009, given the poor economy). 2. A [...]

This morning, July 1st, brought a BIG change in the way you pay your employment payroll taxes! If you are using software, like QuickBooks, for your payroll, make SURE that you have the latest update in place before you try to pay June's taxes or file 2nd quarter tax returns. While having the latest updates is [...]

What this means to you: Contemporaneous means; you may not reconstruct mileage logs after the fact. Therefore, you may want to require logs each time an employee returns a vehicle or returns from a trip or at least require reports on a weekly basis. The IRS has denied companies the whole automobile expense deduction, and [...]